What it should really be doing is realise that the node never existed
in the branch and so deleting it is not a conflict (I know svn is not
that smart yet and won't be for a while...)

But I think the missing status notification is just fine in the meantime.
I agree the text should say "local missing" instead of "local delete",
but IIRC we don't know the difference since we're not searching branch
history [yet].